Key Takeaways
- SOL is trading above $160 after testing a $150 low on Tuesday.
- The token could move toward $200 soon amid increasing demand and constrained supply.
SOL recovers after Tuesday’s plunge
Solana’s derivatives market has not fully recovered since the deleveraging event on October 10, when more than $19 billion in crypto positions were liquidated within 24 hours. Data from CoinGlass showed that futures open interest (OI) averaged $17.63 billion on Wednesday, up from $7.7 billion on Tuesday.
Rising OI, which reflects the notional value of outstanding futures contracts, suggests renewed interest from retail traders in the token. A steady recovery in OI would support a short-term bullish outlook; without it, Solana’s recovery potential could stay limited.
Solana bulls target a near-term breakout
The SOL/USD daily chart remains weighted toward the downside, as Solana has yet to reclaim the psychological $200 level. SOL is currently trading near $160 as the broader crypto market stabilizes following the recent sell-off.
The daily Relative Strength Index (RSI) sits around 40, indicating that the bearish momentum is easing. If RSI moves above the neutral 50 mark, SOL could rally toward the immediate resistance near $188. In an extended bullish run, SOL could test $200 for the first time since October 25.
However, if downward pressure returns, SOL could slip below the $150 support and retest the recent low around $144.
Conversely, the daily Moving Average Convergence Divergence (MACD) is positioned to generate a buy signal if the MACD line crosses above the signal line and remains elevated. Such a cross would likely encourage investors to increase risk exposure.
From current levels, SOL could see a roughly 22% upside move, bringing it toward the $200 psychological level if bullish momentum strengthens.